Financial globalization and monetary policy

• 成果类型: Article
• 署名作者: Devereux, Michael B.; Sutherland, Alan
• 署名单位: University of British Columbia; University of British Columbia; University of St Andrews
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2008.09.008
• 发表日期: 2008
• 页码: 1363-1375
• 关键词: portfolio choice; International risk sharing; Exchange rate

摘要

Recent data Show Substantial increases in the size of gross external asset and liability positions. The implications of these developments for optimal Conduct of monetary policy are analyzed in a standard open economy model which is augmented to allow for endogenous portfolio choice. The model shows that monetary policy takes on new importance due to its impact oil nominal asset returns. Nevertheless, the case for price stability as an optimal monetary rule remains. In fact, it is reinforced. Even without nominal price rigidities, price stability is optimal because it enhances the risk sharing Properties of nominal bonds. (C) 2008 Elsevier B.V. All rights reserved.